The Fed's Strategy to Target the Financial Markets Reduces Urgency for Change

I believe that this constant drumbeat of stimulus on some level over time has reduced the urgency for change. Financial markets serve a really valuable function in our society and that is as a signal. And I think when you have this program which is targeting artificially pumping up markets over time, what you're really doing is reducing that urgency. So that's my biggest fear. My biggest fear is we are at an all-time high effectively in the US stock market and bond market. Yet we have an economy in which if we had the same labor participation that we had pre-2008, we'd have over 10% inflation.

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